What you absolutely must know about linkage between goals and business strategy?

In every business there is emphasis on goals as end state of strategy. No dispute at all. Goals are broad, long-term and qualitative aims of a firm and must be in consonance with its policy & vision. Here are six saliences that demo the linkage between goals and business strategy:

1.        Goal is derived from the word “go” which is broader in meaning. Go where, is the question that props out from this. Basically a goal means an aim or purpose to be obtained as an end-state. We speak of goal as an end to be achieved during the business lifecycle and that too in sync with business strategy

2.        Goals are framed as guided by the vision of the company that takes into account policy framework under which the firm carries on its business. In effect, the format of goal must answer the question “what we like to become”.   For example, a business may declare its goal as “we like to become leading manufacturer of motor vehicles”. Here specificity is absent as the vehicle connotes both passenger as well as freight transportation

3.        It is not that easy to visualize or for that matter state precisely about goals because these are broader, long-term purposes that have global perspectives. The ramifications of such broader concept impel business strategy to be more of abstract nature and so are the goals

4.        You are aware that business strategy arises from business concept and business policy and when it is extended to the stipulation of goals the same pattern remains. Any departure from the concept and policy is generally frowned upon by all stakeholders of a firm because business strategy and stipulated goals are so intertwined that it would tantamount to upset the applecart

5.        While executing business strategy firm need to be adaptive in terms of meeting with competition and adjusting its market policy. In such a scenario it is necessary to validate whether goals set are going to be static or need to be tweaked to make it more realistic in terms of achieving them and also in terms of allocating resources to achieve them under the changed circumstances

 6.       As business strategy is of fluid nature in the face of severe market competition or constraints placed on the firm specially where there is no level playing field. In this context goals too cannot be measured under the parameters set previously. Therefore, goals must also be amended to keep up with the present and/or expected situation.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist